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Studies have been carried out with both emulsion paints and powder paints, both with clear results on how the use of Lithopone 30% reduces the appearance of algae in the paint once it has been applied (see photos). 

There's also evidence that inhaling titanium dioxide particles can be dangerous. That's mainly a concern for industrial workers. In places where it's produced, or where it's used to make other products, workers can breathe it in as a dust. The Occupational Health and Safety Administration has exposure standards manufacturers must meet.